I am wondering is it worth to buy now in Fraser valley area as a buy and hold strategy for personal residence and convert to rental later in this present seller market ? Any thoughts appreciated!
2014 would have been better. Or 2006. Or 1998. Or 1982. Or 1960.
Failing that, yes, today is just as good. With 40,000+ people moving to Lower Mainland prices will go up, not in a straight line of course, but up nevertheless.
Detached is forecasted to continue to drop.. but no matter what time it is, NOW is the time to buy. In the long run a few months or even years difference is often a very small impact
There is a time to buy, hold, sell every asset. Some assets are uninvestable. There is no short position that can be taken in SFH.
Holding a SFH in Fraser Valley is destined to be a cash suck. Yields are too low, maintenance and cyclicals too high. Investing like this is going to basing your return 120% on appreciation because you will probably lose 20% of your capital during operating and selling the asset. So the question is how deeply are you willing to bet on appreciation as your sole , completely undiversified source of return?
Prices are starting to come off all time highs, mortgage financing is much more difficult to get. Supply is starting to moderate. Seems like opportunities are on the way!
Prices are starting to come off all time highs, mortgage financing is much more difficult to get. Supply is starting to moderate. Seems like opportunities are on the way!
Thomas is correct as he often is.
My five cents is ....
There's never a wrong time to buy real estate regardless the location.
But...
There's is a wrong time to sell.
As long you aren't in a hurry it always (or typically) pays off over a long period of time.
Edison
I agree with Carla. I bought a property in 2008 that I paid 360,000 for. It’s valued at 320,000 right now, but in 10 years I have paid the mortgage down and have had positive cash flow from day 1 (with 20% down). I don’t need to sell it. I will sell when the market improves or when the mortgage is paid off. I have pretty much bought properties every year since 1982 in Edmonton. I have yet to lose money on any property in Edmonton because I have a long term vision (let’s not talk about the property I bought in Brandon Manitoba...)